??Desk of CA. Praveen Sharma Series-613?? Super 30 Points on Scope of Supply S.7 under GST.

1. Inclusive Definition: "Supply" encompasses various transactions, including sale, transfer, barter, exchange, license, rental, lease, or disposal.

2. Consideration Requirement: Generally, a supply must involve consideration, meaning payment or compensation.

3. Business Context: The transaction should occur in the course or furtherance of business activities.

4. Import of Services: Importing services for consideration is considered a supply, regardless of whether it's for business purposes.

5. Deemed Supplies Without Consideration: Certain activities are treated as supplies even without consideration, as specified in Schedule I.

6. Permanent Transfer of Business Assets: Disposing of business assets where input tax credit (ITC) has been claimed is deemed a supply.

7. Transactions Between Related Persons: Supplies between related or distinct persons (e.g., different registrations under the same PAN) are considered supplies, even without consideration.

8. Principal-Agent Transactions: Supplies between a principal and agent are treated as supplies under certain conditions.

9. Import of Services from Related Persons: Importing services from a related person or an establishment outside India, in the course or furtherance of business, is deemed a supply.

10. Schedule II Activities: This schedule specifies activities to be treated as supply of goods or services, aiding in classification.

11. Transfer of Title in Goods: Transferring ownership of goods is considered a supply of goods.

12. Transfer of Right in Goods: Transferring the right to use goods without transferring ownership is treated as a supply of services.

13. Leasing and Renting: Leasing or renting land or buildings is classified as a supply of services.

14. Treatment or Process: Applying a treatment or process to another person's goods is considered a supply of services.

15. Transfer of Business Assets: Using business assets for personal purposes or ceasing to be a taxable person can be deemed supplies.

16. Composite and Mixed Supplies: The tax liability for composite or mixed supplies is determined based on the principal supply or the highest tax rate applicable.

17. Schedule III Activities: Certain activities are neither treated as supply of goods nor services, such as services by an employee to an employer in the course of employment.

18. Government Activities: Specific activities by the government or local authorities, as notified, are not considered supplies.

19. Power to Notify Transactions: The government can specify transactions to be treated as supply of goods or services through notifications.

20. Consideration Definition: Consideration includes any payment made or to be made, whether in money or otherwise, in respect of the supply.

21. Business Definition: "Business" encompasses trade, commerce, manufacture, profession, vocation, adventure, or any similar activity.

22. Related Persons: Persons are considered related if they have certain specified relationships, such as employer and employee.

23. Distinct Persons: Establishments of a person in different states or countries are treated as distinct persons.

24. Gifts to Employees: Gifts not exceeding ?50,000 in value in a financial year by an employer to an employee are not treated as supplies.

25. Self-Supplies: Transactions between different registrations of the same legal entity are considered supplies.

26. Barter and Exchange: Barter (exchange of goods or services without money) is considered a supply under GST.

27. Licenses and Leases: Granting licenses or leases is treated as a supply of services.

28. Disposal of Assets: Disposing of business assets, even without consideration, can be deemed a supply if ITC was claimed.

29. Import of Goods: Importing goods is subject to GST under the IGST Act, separate from the definition of supply in Section 7.

30. Scope of Supply: The definition of supply is broad, covering various transactions to ensure comprehensive taxation under GST.

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CA. Praveen Sharma